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Blackstone says Rs 5,000 crore REIT will offer financial investment opportunity in real estate

Updated : March 04, 2019 10:30 AM IST

Global investment company Blackstone on Monday said India's first ever real estate investment trust (REIT) will offer a financial investment opportunity in the real estate.

Blackstone and realty firm Embassy Group in a few weeks will launch the country's first REIT with an estimated issue size of Rs 5,000 crore. Embassy Office Parks, the joint venture firm of Blackstone and Embassy, had in September last year filed the draft red herring prospectus (DRHP) with the market regulator Sebi to launch REIT, touted as Asia's largest in terms of portfolio size of 33 million sq ft.

In an interview to CNBC-TV18, Tuhin Parikh, senior managing director said, "What we are really trying to do is bring liquidity to inherently illiquid markets. Indians love investing in real estate and all are looking for long-term growing cash flows. Real estate is one of the few asset classes that lends itself to long term cash flows, which are growing in India and realty is the only way to play that."

Parikh further said, "Rs 2 lakh minimum lot size is something that Securities and Exchange Board of India (Sebi) is reconsidering. If you are aware that Sebi has out a consultation paper out to reduce that to Rs 15,000, so hopefully the market will broad base itself."
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